_GROWTH AREAS INFRASTRUCTURE CONTRIBUTION WORK-IN-KIND AGREEMENTS
The Planning and Environment Act 1987 (the Act) has recently been amended to allow developers to enter into a work-in-kind agreement for the provision of land or works or a combination of both as an alternative to paying the whole or part of the Growth Areas Infrastructure Contribution (GAIC).
The land and works to be provided under a work-in-kind agreement must be for State funded infrastructure of a type that could be funded by the GAIC and must be approved by the Minister for Planning. For further information about the work-in-kind agreement including guidelines that outline the criteria to be met click here. (http://www.dpcd.vic.gov.au/planning/theplanningsystem/legislation-and-regulations/planning-acts/growth-areas-infrastructure-contribution).
The earlier delivery of State infrastructure provided by the developer could increase the marketability of a development and could result in cost savings if the works are delivered at a cost less than the pre-agreed value. Similarly, setting aside land for future State infrastructure could provide more certainty to potential home buyers that the infrastructure will be delivered.